Methods of Disinvestment

Initial Public Offering (IPO) – Offer of shares by an unlisted CPSE or the Government out of its shareholding or a combination of both to the public for subscription for the first time.

  • Further Public Offering (FPO) – Offer of shares by a listed CPSE or the Government out of its shareholding or a combination of both to the public for subscription.
  • Offer for sale (OFS) of shares by Promoters through Stock Exchange mechanism – method allows auction of shares on the platform provided by the Stock Exchange; extensively used by the Government since 2012.
  • Strategic Sale - sale of substantial portion of the Government shareholding of a central public sector enterprise (CPSE) of upto 50%, or such higher percentage as the competent authority may determine, along with transfer of management control.
  • Institutional Placement Program (IPP) – only Institutions can participate in the offering.
  • CPSE Exchange Traded Fund (ETF) – Disinvestment through ETF route allows simultaneous sale of GoI’s stake in various CPSEs across diverse sectors through single offering. It provides a mechanism for the GoI to monetize its shareholding in those CPSEs which form part of the ETF basket.